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ITC on spare parts and maintenance of machinery

25 September 2017

Sir, please let me know, how can I avail the ITC of spare parts and maintenance of machinery and commercial vehicles, as I've a brick manufacturing unit and having some machines like soil molding machine, backhoe Loader and commercial vehicles, which are used for brick manufacturing and supply of brick.

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 September 2017

Yes. You can get ITC for the repair and maintenance charges...
If you get taxable bill / invoices then you can avail the benefits...
In case it's URD then you can pay tax under RCM basis...

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RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 25 September 2017

The GST suffered by you on payment of tax on purchase of spare parts can be availed as ITC on the basis of invoices issued by the supplier of spare parts, since these parts are meant for repair/maintenance of machinery/equipment which is used for business. Section 16 of the CGST Act provides for this.